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Mission Ready Solutions Inc. Capital/Financing Update 2021

Aug 27, 2021

46550_rns_2021-08-27_4521b152-790d-4a55-a664-8051df6bfb1e.pdf

Capital/Financing Update

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CIBC AUTOCALLABLE COUPON BUFFER NOTES LINKED TO SIMON PROPERTY GROUP, INC., SERIES 1

Principal At Risk Notes – Due September 10, 2026

Dated August 27, 2021

A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Linked to Simon Property Group, 0.60% Monthly Contingent Coupon Monthly Autocall Feature (starting Variable Buffered Downside Inc. Payments (7.20% per annum) in March 2022) Protection

Investment Highlights

Currency

CAD denominated.

Reference Share

The common shares of Simon Property Group, Inc. listed on the NYSE (NYSE: SPG).

Cash Flow

The Notes offer the opportunity to obtain monthly Coupon Payments equal to the Coupon Amount of $0.60 per Note if the Reference Share Return on the immediately preceding Valuation Date is greater than or equal to -25.00%.

Call Feature

The Notes will be automatically called by CIBC on a Call Date if the Reference Share Return on the Valuation Date immediately preceding such Call Date is greater than or equal to 5.00%.

Variable Buffered Downside Protection

If the Notes are not automatically called by CIBC and if the Reference Share Return at maturity is negative, the Notes provide principal protection at maturity if the Reference Share Return is greater than or equal to -25.00% on the final Valuation Date. If, however, the Reference Share Return is less than -25.00% on the final Valuation Date, the Variable Amount will be equal to the product of (i) the Reference Share Return plus 25.00%; and (ii) 133.33% (which will be negative in these circumstances and will result in a loss of a portion of the Principal Amount at maturity), subject to a minimum Maturity Amount of $1.00 per Note.

Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
5 years
September 3, 2021
September 10, 2021
September 10, 2026
$5,000
Wood Gundy: SyndNET
Third party: Fundserv CBL12449


Distribution groups 1
British Columbia:
877 858-9332
Ontario:
866 474-4166
Distribution groups 2
Prairies:
866 391-8633
Québec:
855 847-6696
Distribution groups 3
Atlantic Canada:
888 847-6407
Fundserv Client Services:
866 474-0142

Investors will not have any right to receive any dividends or other distributions on the Reference Share. The annual dividend yield of the Reference Share was 4.66% for the 12 months ended August 20, 2021, which would represent aggregate dividends of 23.30% over the five year term of the Notes, assuming the dividend yield remains consistent and the dividends are not reinvested.

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 1

Hypothetical Examples

The following hypothetical examples show how the Coupon Payments and the Maturity Amount would be calculated under three different scenarios. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Share at any time during the term of the Notes or the return that may be paid on the Notes. The actual performance of the Reference Share will be different from these hypothetical examples and the differences may be material.

Hypothetical Scenario #1 with no Coupon Payments payable and the Notes are not called prior to maturity

In this hypothetical scenario, the Reference Share Return was less than -25.00% on each Valuation Date. Accordingly, the Notes were not automatically called by CIBC prior to maturity and Investors would not be entitled to receive a Coupon Payment on any of the Coupon Payment Dates. The Variable Amount at maturity will be -$4.00 per Note, calculated as the product of $100.00 x (-28.00% + 25.00%) x 133.33%, as the Reference Share Return is less than -25.00% on the final Valuation Date. In this example the total cumulative return is -4.00% (which is equal to an annual compounded return of -0.81%).

Monthly Valuation Date Reference Share Return Coupon Payment
1 -42.00% $0.00
2 -38.00% $0.00
3 -31.00% $0.00
4 -44.00% $0.00
5 -33.00% $0.00
6 -30.00% $0.00
7 -43.00% $0.00
8 -44.00% $0.00
9 -34.00% $0.00
10 -43.00% $0.00
11 -35.00% $0.00
12 -43.00% $0.00
13 -35.00% $0.00
14 -30.00% $0.00
15 -39.00% $0.00
16 -41.00% $0.00
17 -41.00% $0.00
18 -36.00% $0.00
19 -41.00% $0.00
20 -34.00% $0.00
21 -29.00% $0.00
22 -39.00% $0.00
23 -35.00% $0.00
24 -39.00% $0.00
25 -43.00% $0.00

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 2

Monthly Valuation Date Reference Share Return Coupon Payment
26 -28.00% $0.00
27 -28.00% $0.00
28 -40.00% $0.00
29 -42.00% $0.00
30 -32.00% $0.00
31 -29.00% $0.00
32 -44.00% $0.00
33 -28.00% $0.00
34 -35.00% $0.00
35 -32.00% $0.00
36 -35.00% $0.00
37 -35.00% $0.00
38 -28.00% $0.00
39 -43.00% $0.00
40 -34.00% $0.00
41 -33.00% $0.00
42 -39.00% $0.00
43 -31.00% $0.00
44 -33.00% $0.00
45 -30.00% $0.00
46 -42.00% $0.00
47 -37.00% $0.00
48 -42.00% $0.00
49 -33.00% $0.00
50 -32.00% $0.00
51 -28.00% $0.00
52 -35.00% $0.00
53 -42.00% $0.00
54 -45.00% $0.00
55 -34.00% $0.00
56 -43.00% $0.00
57 -43.00% $0.00
58 -40.00% $0.00
59 -38.00% $0.00
60 -28.00% $0.00

Total Coupon Payments: $0.00 Variable Amount: $100.00 x (-28.00% + 25.00%) x 133.33% = -$4.00 Maturity Amount: $96.00 Annual Compounded Return: -0.81%

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 3

Hypothetical Scenario #2 with Coupon Payments payable on thirty-one Coupon Payment Dates and the Notes are not called prior to maturity

In this hypothetical scenario, the Reference Share Return was below 5.00% on each Valuation Date and the Reference Share Return was less than -25.00% on twenty-nine Valuation Dates. Accordingly, the Notes were not automatically called by CIBC prior to maturity and Investors would be entitled to receive Coupon Payments on thirty-one Coupon Payment Dates (aggregate Coupon Payments of $18.60 over the term of the Notes). The Variable Amount at maturity will be the product of $100.00 x 0.00%, as the Reference Share Return was greater than or equal to -25.00% on the final Valuation Date. In this example the total cumulative return is 18.60% (which is equal to an annual compounded return of 3.47%).

Monthly Valuation Date Reference Share Return Coupon Payment
1 -26.00% $0.00
2 -34.00% $0.00
3 -37.00% $0.00
4 -40.00% $0.00
5 -32.00% $0.00
6 -26.00% $0.00
7 -38.00% $0.00
8 -34.00% $0.00
9 -37.00% $0.00
10 -32.00% $0.00
11 -32.00% $0.00
12 -26.00% $0.00
13 -29.00% $0.00
14 -28.00% $0.00
15 -39.00% $0.00
16 -31.00% $0.00
17 -32.00% $0.00
18 -30.00% $0.00
19 -31.00% $0.00
20 -32.00% $0.00
21 -31.00% $0.00
22 -32.00% $0.00
23 -28.00% $0.00
24 -40.00% $0.00
25 -38.00% $0.00
26 -26.00% $0.00
27 -26.00% $0.00
28 -38.00% $0.00
29 -37.00% $0.00
30 -18.00% $0.60

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 4

Monthly Valuation Date Monthly Valuation Date Reference Share Return Coupon Payment
31 -6.00% $0.60
32 -13.00% $0.60
33 -17.00% $0.60
34 -22.00% $0.60
35 0.00% $0.60
36 -24.00% $0.60
37 -15.00% $0.60
38 -24.00% $0.60
39 -13.00% $0.60
40 -2.00% $0.60
41 -11.00% $0.60
42 -21.00% $0.60
43 -3.00% $0.60
44 -7.00% $0.60
45 1.00% $0.60
46 -14.00% $0.60
47 0.00% $0.60
48 -23.00% $0.60
49 3.00% $0.60
50 -11.00% $0.60
51 -24.00% $0.60
52 -15.00% $0.60
53 -20.00% $0.60
54 -22.00% $0.60
55 -2.00% $0.60
56 -21.00% $0.60
57 -17.00% $0.60
58 1.00% $0.60
59 -8.00% $0.60
60 -15.00% $0.60
Total Coupon Payments: $18.60
Variable Amount: $0.00
Maturity Amount: $100.00
Annual Compounded Return:3.47%

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 5

Hypothetical Scenario #3 with Coupon Payments payable on forty-two Coupon Payment Dates and the Notes are called prior to maturity

In this hypothetical scenario, the Reference Share Return was greater than or equal to 5.00% on the 42[nd] Valuation Date and the Reference Share Return was greater than or equal to -25.00% on forty-two Valuation Dates. Accordingly, the Notes were automatically called by CIBC on the related Call Date following the 42[nd] Valuation Date and Investors would be entitled to receive Coupon Payments on forty-two Coupon Payment Dates (aggregate Coupon Payments of $25.20 over the term of the Notes). Since the Reference Share Return on the 42[nd] Valuation Date was greater than 5.00%, the Notes will be called prior to maturity and the Variable Amount will be equal to $0.00 per Note, calculated as the product of $100.00 x 0.00%. In this example the total cumulative return is 25.20% (which is equal to an annual compounded return of 6.63%).

Monthly Valuation Date Reference Share Return Coupon Payment
1 -23.00% $0.60
2 -14.00% $0.60
3 -16.00% $0.60
4 -2.00% $0.60
5 -18.00% $0.60
6 4.00% $0.60
7 -23.00% $0.60
8 -15.00% $0.60
9 -19.00% $0.60
10 -14.00% $0.60
11 -12.00% $0.60
12 -14.00% $0.60
13 -7.00% $0.60
14 -2.00% $0.60
15 -14.00% $0.60
16 -19.00% $0.60
17 -4.00% $0.60
18 1.00% $0.60
19 -20.00% $0.60
20 -14.00% $0.60
21 -17.00% $0.60
22 -9.00% $0.60
23 2.00% $0.60
24 -19.00% $0.60
25 -5.00% $0.60
26 3.00% $0.60
27 -20.00% $0.60
28 -22.00% $0.60
29 -13.00% $0.60
30 3.00% $0.60

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 6

Monthly Valuation Date Reference Share Return Coupon Payment
31 -11.00% $0.60
32 -19.00% $0.60
33 -7.00% $0.60
34 -21.00% $0.60
35 -7.00% $0.60
36 -9.00% $0.60
37 3.00% $0.60
38 -18.00% $0.60
39 1.00% $0.60
40 -3.00% $0.60
41 0.00% $0.60
42 6.00% $0.60

Total Coupon Payments: $25.20 Variable Amount: $0.00 Maturity Amount: $100.00 Annual Compounded Return: 6.63%

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 7

Investment Details

Issuer

Canadian Imperial Bank of Commerce (“CIBC”).

Principal Amount

$100.00 (Par) per Note.

Issue Size

Maximum $50,000,000 (500,000 Notes).

Minimum Subscription

$5,000 (50 Notes).

Reference Share

The common shares of Simon Property Group, Inc. listed on the NYSE (NYSE: SPG).

Issue Date

September 10, 2021

Maturity Date / Term

September 10, 2026 (5 years), provided that if such date is not a Business Day then the Maturity Date will be the immediately following Business Day, subject to the Notes being automatically called by CIBC on any Call Date and subject to the occurrence of a Market Disruption Event.

Coupon Payment Dates, Valuation Dates and Call Dates

Based on an Issue Date of September 10, 2021, the Coupon Payment Dates, Valuation Dates and Call Dates are as follows:

Valuation Dates Coupon Payment Dates Call Dates
October 4, 2021 October 12, 2021 -
November 3, 2021 November 10, 2021 -
December 3, 2021 December 10, 2021 -
January 4, 2022 January 11, 2022 -
February 3, 2022 February 10, 2022 -
March 3, 2022 March 10, 2022 March 10, 2022
April 4, 2022 April 11, 2022 April 11, 2022
May 3, 2022 May 10, 2022 May 10, 2022
June 3, 2022 June 10, 2022 June 10, 2022
June 30, 2022 July 11, 2022 July 11, 2022
August 3, 2022 August 10, 2022 August 10, 2022
September 2, 2022 September 12, 2022 September 12, 2022

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 8

Valuation Dates Coupon Payment Dates Call Dates
October 3, 2022 October 11, 2022 October 11, 2022
November 3, 2022 November 10, 2022 November 10, 2022
December 5, 2022 December 12, 2022 December 12, 2022
January 3, 2023 January 10, 2023 January 10, 2023
February 3, 2023 February 10, 2023 February 10, 2023
March 3, 2023 March 10, 2023 March 10, 2023
March 31, 2023 April 10, 2023 April 10, 2023
May 3, 2023 May 10, 2023 May 10, 2023
June 5, 2023 June 12, 2023 June 12, 2023
June 29, 2023 July 10, 2023 July 10, 2023
August 2, 2023 August 10, 2023 August 10, 2023
September 1, 2023 September 11, 2023 September 11, 2023
October 2, 2023 October 10, 2023 October 10, 2023
November 3, 2023 November 10, 2023 November 10, 2023
December 4, 2023 December 11, 2023 December 11, 2023
January 3, 2024 January 10, 2024 January 10, 2024
February 5, 2024 February 12, 2024 February 12, 2024
March 4, 2024 March 11, 2024 March 11, 2024
April 3, 2024 April 10, 2024 April 10, 2024
May 3, 2024 May 10, 2024 May 10, 2024
June 3, 2024 June 10, 2024 June 10, 2024
July 2, 2024 July 10, 2024 July 10, 2024
August 2, 2024 August 12, 2024 August 12, 2024
September 3, 2024 September 10, 2024 September 10, 2024
October 3, 2024 October 10, 2024 October 10, 2024
November 5, 2024 November 12, 2024 November 12, 2024
December 3, 2024 December 10, 2024 December 10, 2024
January 3, 2025 January 10, 2025 January 10, 2025
February 3, 2025 February 10, 2025 February 10, 2025
March 3, 2025 March 10, 2025 March 10, 2025
April 3, 2025 April 10, 2025 April 10, 2025
May 5, 2025 May 12, 2025 May 12, 2025
June 3, 2025 June 10, 2025 June 10, 2025
July 2, 2025 July 10, 2025 July 10, 2025
August 1, 2025 August 11, 2025 August 11, 2025
September 3, 2025 September 10, 2025 September 10, 2025
October 3, 2025 October 10, 2025 October 10, 2025
November 3, 2025 November 10, 2025 November 10, 2025

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 9

Valuation Dates Coupon Payment Dates Call Dates
December 3, 2025 December 10, 2025 December 10, 2025
January 5, 2026 January 12, 2026 January 12, 2026
February 3, 2026 February 10, 2026 February 10, 2026
March 3, 2026 March 10, 2026 March 10, 2026
April 2, 2026 April 10, 2026 April 10, 2026
May 4, 2026 May 11, 2026 May 11, 2026
June 3, 2026 June 10, 2026 June 10, 2026
July 2, 2026 July 10, 2026 July 10, 2026
July 31, 2026 August 10, 2026 August 10, 2026
September 2, 2026 September 10, 2026 -

Provided that (i) if any such Coupon Payment Date is not a Business Day, then the Coupon Payment Date will be the next Business Day, subject to the occurrence of a Market Disruption Event; (ii) if the Issue Date is postponed, each Call Date will be postponed by an equivalent number of days, and provided further that if any such Call Date is not both a Business Day and at least five Business Days following the applicable Valuation Date, the applicable Call Date will be postponed until the next Business Day that is at least five Business Days following the immediately preceding Valuation Date, in each case subject to the occurrence of a Market Disruption Event; and (iii) if any such Valuation Date is not an Exchange Day, then the applicable Valuation Date will be the immediately preceding Exchange Day, subject to the occurrence of a Market Disruption Event.

Coupon Payments

On each monthly Coupon Payment Date during the term of the Notes, Investors will be eligible to receive a Coupon Payment equal to $0.60 per Note (the “Coupon Amount”). Coupon Payments will be determined as follows:

  • if the Reference Share Return on the immediately preceding Valuation Date is greater than or equal to -25.00%, the Coupon Payment will equal the Coupon Amount; and

  • if the Reference Share Return on the immediately preceding Valuation Date is less than -25.00%, the Coupon Payment will be $0.00 per Note.

The total Coupon Payments payable to Investors over the term of the Notes will not exceed $36.00 per Note (based on $0.60 per Note payable on each Coupon Payment Date). No Coupon Payments will be paid on a Coupon Payment Date if the Reference Share Return on the immediately preceding Valuation Date is less than -25.00% or if the Notes have been automatically called by CIBC on a preceding Call Date. There is no guarantee that any Coupon Payments will be paid during the term of the Notes.

Call Feature

The Notes will be automatically called by CIBC on a Call Date if the Reference Share Return on the Valuation Date immediately preceding such Call Date is greater than or equal to 5.00%.

Reference Share Return

The Reference Share Return will be a number (positive or negative), expressed as a percentage, determined as follows:

(Share PriceVD – Share PriceID) / Share PriceID,

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 10

where:

  • the “Share PriceVD” will be the Closing Price on the applicable Valuation Date; and

  • the “Share PriceID” will be the Closing Price on the Issue Date, provided that if the Issue Date is not an Exchange Day, the Share PriceID shall be determined on the next following Exchange Day (in which case references to the Closing Price on the Issue Date shall be deemed to refer to the Closing Price on such next following Exchange Day),

subject in each case to the provisions set out under “Market Disruption Events, Adjustments and Substitutions and Extraordinary Events” in the Prospectus.

Maturity Amount

Investors will be entitled to receive on the later of (a) the fifth Business Day following the final Valuation Date and (b) the Maturity Date (the "Maturity Payment Date") (or on a Call Date, if the Notes are automatically called by CIBC prior to the Maturity Date) in respect of each Note held by such Investor, an amount (the “Maturity Amount”) equal to the sum of (i) the Principal Amount and (ii) the Variable Amount, which will either be nil or negative, subject to a minimum Maturity Amount of $1.00 per Note.

Variable Amount

The Variable Amount for a Note is an amount equal to the product of $100.00 multiplied by the following:

  • 0.00%, if the Reference Share Return is greater than or equal to -25.00% on the immediately preceding Valuation Date; or

  • the product of (i) the Reference Share Return plus 25.00%; and (ii) 133.33% (which will be negative in these circumstances and will result in a loss of a portion of the Principal Amount at maturity), if the Reference Share Return is less than -25.00% on the immediately preceding Valuation Date.

If the Notes are called by CIBC, Investors will not be entitled to receive any further return that they would have otherwise been entitled to receive if the Notes had not been called by CIBC.

Secondary Market and Early Trading Amount

The Notes will not be listed on any securities exchange or quotation system. CIBC World Markets Inc. (“CIBC WM”) intends to provide a daily secondary market for the sale of Notes to CIBC WM, but reserves the right not to do so, in its sole discretion, at any time without any prior notice to Investors. Under no circumstances will CIBC WM provide a secondary market for the Notes on or following a Valuation Date for the Notes if the Notes will be called by CIBC on the applicable Call Date. No other secondary market for the Notes will be available. Any sale in the secondary market may be made at a price less than the Principal Amount and will reflect the deduction of an early trading amount of 3.42% per Note initially, declining daily by 0.038% to 0.00% after 90 days. A sale of Notes originally purchased using the Fundserv network will be subject to certain additional procedures and limitations established by the Fundserv network.

An Investor who disposes of a Note to CIBC WM in the secondary market will generally be required to include in income as interest the amount, if any, by which the sale price exceeds the Principal Amount of such Note. Investors who dispose of a Note prior to maturity should consult their own tax advisors. See “Certain Canadian Federal Income Tax Considerations” in the Pricing Supplement.

Calculation Agent

CIBC WM.

Registered Account Eligibility

RRSPs, RRIFs, RESPs, RDSPs, certain DPSPs, and TFSAs.

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 11

Fundserv is a registered trademark of Fundserv Inc.

This document should be read in conjunction with the short form base shelf prospectus dated November 5, 2019 (the “Prospectus”) and the CIBC Pricing Supplement No. 1,697 to the Prospectus dated August 27, 2021 (the “Pricing Supplement”).

An investment in the Notes involves risks not associated with conventional fixed rate or floating rate debt securities. None of CIBC, the Dealers or any of their respective affiliates, associates, or any other person or entity guarantees that holders of Notes will receive an amount equal to their original investment in the Notes or guarantees that any return will be paid on the Notes (subject to the minimum Maturity Amount of $1.00 per Note) at or prior to maturity of the Notes. Amounts paid to holders of the Notes will depend on the performance of the Reference Index. An investment in Notes is not suitable for a purchaser who does not understand (either on his or her own or with the help of a financial advisor) the terms of the Notes or the risks associated with the Notes and with structured products, options or similar financial instruments generally. See “Risk Factors” in the Prospectus and “Certain Risk Factors” in the Pricing Supplement.

The Notes will not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking institution.

The principal amount of the Notes will not be fully guaranteed and, subject to the minimum Maturity Amount of $1.00 per Note, will be at risk. As a result, Investors could lose substantially all of their original investment in the Notes.

CIBC WM intends to provide a secondary market for the sale of Notes to CIBC WM but reserves the right not to do so, in its sole discretion, at any time without any prior notice to holders of Notes. There is no other market through which the Notes may be sold and purchasers may not be able to re-sell Notes.

CIBC WM is a wholly-owned subsidiary of CIBC. By virtue of such ownership, CIBC is a “related issuer” and a “connected issuer” of CIBC WM within the meaning of applicable securities legislation. See “Plan of Distribution” in the Prospectus.

CIBC Autocallable Coupon Buffer Notes linked to Simon Property Group, Inc., Series 1 | 12